As the Budget looms and sector warnings grow louder, Reeves could take a lesson in listening, trust and stability from the high street

As the Budget looms and sector warnings grow louder, Reeves could take a lesson in listening, trust and stability from the high street

Reading Next’s latest results got me thinking. This is a retailer so often held up as one of the best run in the UK: consistent, steady, admired for its management. Yet even Next is warning about the impact of government policy on its outlook. When a business with that track record sounds the alarm, it feels like a moment to take notice.

It reminded me of our recent retail event with BE News. The mood in the LCA’s offices that day was strikingly positive. Retail has survived Covid, proved the future is not all online, and continues to thrive in destinations that bring together shopping, hospitality, culture and high-quality public realm. Too often the headlines dwell on high-profile failures, but those usually reflect poor management rather than the health of the sector itself.

One panellist captured it perfectly when they said: “Success in retail has always been about being a good shopkeeper.” It is a line I have turned over in my head since. What does it mean in practice, and how does it apply to the current context?

Next is the ultimate example of good practices delivering results and winning customer loyalty and investor confidence over the long term. But even the best-run retailers can only do so much on their own. Rising taxes, falling consumer confidence, higher wage and National Insurance costs, and global supply chain pressures are not challenges that can be solved with sharper merchandising or better service. They are structural pressures that shape the environment in which retailers must operate.

There are surely lessons here for government as 26 November approaches and pressure mounts. Good shopkeepers succeed by listening to their customers. For the Chancellor, that means listening to retailers, especially stalwarts like Next, about what they need to keep thriving. Retailers keep shelves stocked and prices right; government should ensure taxes and rates do not become unmanageable. Shops create places people want to return to; government must provide stability to give businesses and investors confidence. The best retailers build trust over the long term. Consistency in policy will keep the sector on side.

Retail has plenty of reasons to be optimistic. But the sector still needs fair conditions to succeed. This week alone, the British Retail Consortium, Tesco and Greggs have all warned about the pressures facing the sector and the risks of higher costs being passed on to consumers. It is a growing chorus that cannot be ignored. The question now is whether Rachel Reeves can take a leaf out of retail’s book and practise some good shopkeeping of her own.

This piece was originally commissioned by BE News: The chancellor needs to listen to retailers ahead of the November Budget | BE News